This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Working in the UK for a non UK company

onomast
Posts:17
Joined:Sun Apr 21, 2013 3:30 pm
Working in the UK for a non UK company

Postby onomast » Tue Dec 23, 2014 4:49 pm

A colleague was seconded from Singapore to work in the UK on an international project that is being piloted here. She will have been here for over the 183 days by April but not living in the same place and still being paid by Singapore. She's been taking short holidays in Europe during this time. She hasn't got a UK bank account.

We've now set up a UK company and are thinking of passing this project over to it and transferring her to the UK as an employee. She's currently on a 6 month visa which expires in March but can get this extended. Would she be considered UK resident for the 2014/5 tax year if we do the transfer on 6th April?

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Working in the UK for a non UK company

Postby GlobalTaxAdviser » Tue Dec 23, 2014 8:19 pm

Hi

Residency is governed by the relatively new Statutory Residency Test. There are various tests to pass to determine resident and non resident

If she has stayed more than 183 days then she will automatically considered as resident in the UK. There shouldn't be a charge for national insurance for upto 52 weeks providing UK and Singapore don't have a social security agreement

There are other considerations that may apply for international staff like overseas workday relief, remittance basis and temporary work place rules.

Kind Regards

Sash

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Working in the UK for a non UK company

Postby GlobalTaxAdviser » Tue Dec 23, 2014 8:19 pm

Hi

Residency is governed by the relatively new Statutory Residency Test. There are various tests to pass to determine resident and non resident

If she has stayed more than 183 days then she will automatically considered as resident in the UK. There shouldn't be a charge for national insurance for upto 52 weeks providing UK and Singapore don't have a social security agreement

There are other considerations that may apply for international staff like overseas workday relief, remittance basis and temporary work place rules.

Kind Regards

Sash

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Working in the UK for a non UK company

Postby GlobalTaxAdviser » Tue Dec 23, 2014 8:38 pm

Sorry to have sent the same message twice

Can I add since she maybe resident in both singapore and UK and end up paying tax twice on the same income. The double tax treaty between Singapore and UK allow relief through a tax credit (Article 22). The Tie breaker in Article 4 will determine her primary residence.

I understand the Singapore financial year is based on a calendar year.

Kind Regards

Sash


Return to “International Tax”